>> welcome to "bloomberg daybreak." asia'se counting down to open.market >> okay. resuming in hong kong but the pressure is rising. aijing said hong kong had critical juncture. warns sees growing signs of terrorism. other stories we're covering in the next hour. defeat up in argentina. stocks and the peso and result

widertential to royal markets. huawei takes the fight to washington. to make the case trump'spresident technology. >> quick check of the markets. u.s. in the another down day in stock markets. we saw the s&p 500 fall below that 2900 level. we had financial and materials decline second section of losses. uncertainties in hong kong and argentina. those risks really being felt the market. even according to futures outlookshe most and coming out from the u.s. ae nasdaq falling more than

percent. treasury, yen and goal. let's see how things unfold in asia. >> sherry, if you look at the here it's pointing to a pretty weak start. chicago nikkei future is down change. down.ve new england we did have markets closed in india,re, japan, malaysia and tie land. -- tieland. tie -- thailand. move thats fragile hong kong airport cancellations of yesterday of the remaining monday flights because of protesters really dampen shares across the board. they are starting to resume, is 10 week into these protests. they're no stein of letting up. the's really hurting market.

switching board, you mention assets. group of tenthat gains. it is approaching the 2019 low versus u.s.g dollar. really nearing that 105 level now. that hong kong argentina risk that i was talking about earlier appetite for risk assets. switching boards again, i want to give you a preview what we're expecting today. we have singapore economic growth, japan, ppi and india inflation. in australia expecting rba to be speaking in sydney. fore watching out australia's business confidence report. earnings we have foxconn industrial. >> all right. thank you very much. first dayk in on the of news. >> thanks. has hired aology u.s. law firm to lobby on its administration pressures allies to put the blacklist.the

huawei is increasingly being the trade war and is currently banned from buying technology. tagsean union may impose on taiwan and indonesia. industry group said eu. imports a billionworth about u.s. dollars last year. european commission has eight tariffs. decide on the the trade back between japan and is widening. the ministry said they will split the category in two and be the only country in the second group. comes after tokyo said export. safe enough for

>> from now on, those country uphold principles and management of export controls will be included in this new group. be the first country group.ncluded in this >> argentinian assets in the after president macri shock defeat in primary election. the peso plunged 53 to the dollar. index went 58%. the investors have been trimming to argentina ahead of the main election on october 37th. there's growing speculation the central bank would have to intervene. global news 24 hours a day and tictoc on twitter and powered by 2700 journalists, in more than countries. this is bloomberg. right. thank you very much. hong kong airports getting back all flights were canceled on monday.

it was by thousands of protesters. the biggest disruption the city's growing economy. beenthan 210 flights have canceled this tuesday. chief correspondent steve engel there at the airport. today?the scene like >> many of them started making -- airportf the ate when know heard their demands were met. forairport was closed flights leaving and most of them be diverted. to we're looking out at the arrival board. flights still with red markings saying they are delayed. maybe 100 or so. that's a rough estimate oftesters still outside

hall b. this is a large building. this. whole area was filled with protesters and of course arriving passengers with their message about police brutality as well as their claim for carriry lamb who stepped down. >> one of the businesses have caught in thes from -- cross fire. feeling the wrath of beijing. hearing?we >> we had that story yesterday one of the big asset management company, ordered its employees not to fly specific as well as air.iate dragon earlier on friday last week, we

heard from the civil aviation china, also wanting the employee who participated or supported the protest movement from flying on china-bound flight or flights that fly into chinese air space just about include every cathay flight that leads from hong kong to europe. potentially damaging news. shares falle saw most. down to lowest level in a decade. today it could be more turmoil areuse the protesters saying, they are calling for another rally here at the airport early in the afternoon. calling for another big rally somewhere in hong kong on the 18th of august. it will be interesting too whether cary lamb have anything to say. she's planning to address the media this morning. right.'s cary lamb has been saying, there might be time for some bold prop up the ailing

economy. by that? she mean >> she's already appealed to landlords across hong kong to go owners,some of the shop and enterprises who have to pay rent here. one move. days theyive give handouts in 6000 hong kong dollars. said they put the police in front of the media to answer all the questions. they cut kind of hide behind and get their ducks in a row. everyone in hong kong is waiting hear from some bold measures coming from the hong kong government on how to resolve to put a band-aid

on this obviously very painful kong.or hong >> especially the prominent businessmen. prominent hongme kong billionaires come out and protesters.lm from they are caught between a rock hard place. >> absolutely. we've had different protests or different groups pro beijing as who are more sympathetic to seeing some give theirong kong, press conferences yesterday. a -- hearing from starting, it's a slow trickle of tycoonusiness we're waiting for the property executives to come out. to givebeen waiting their comments. it's almost no win situation to in on this. so far, there is no end in sight. were talking to some

protesters on where they go next. august 18ththe protest but one protester say we thatelling the government if they keep on cracking down on the protest, hong kong people whatever we can to get our voices heard. this is our last resort. come to thehey have hong kong airport to give their emotional plea to the arriving passengers. >> stephen engle thank you so much forever that joining us the ground of the international airport in hong kong. andcontinued protest there also political incertainty in argentina, both are putting stocks. on u.s. luxury good makers and corn futures tumbling. both are reasons tied to china. didn't see much in terms of positive use that could have market.he >> it was absent economic news and earnings which we'll get week.in the that put greater focus on the

signals age which recession maybe looming. bonds following the rest of the are surged here. we did see that push the yield tenure 10 basesnt you points. let's get into the billing movers. that has to do what we're seeing and all crops, strategist say are tied to the conflict. notice american airlines down. the airlines that continue to be hurt because of the grounding of the max jet. shares rebound if they win a leem victory if their fight with the unions. look at the luxury goods makers.

lot of the luxury good makers market in china and biggest consumers and across the board. a very big hit. anotherem to have casualty in the trade war. calm futures falling the most in six weeks. seen as a collateral damage ongoing trade conflict. what's the story there? >> with china pulling back on its purchase and soybeans and planners,ucts, lot of farmers went big with corn. look tight of this chart. you can find our library of trip. round this corn futures you see it here. big drop this is exports. lot of the weather reports are and it wasr corn surprise to many that there was such huge acreage out there. that is reducing the declines.

sinceown by 6%, the most 2013. let's look at oil which is stabilizing the third-day higher. the downed trend -- down trend has a lot to do with the effort saudis to prop up price. let's look at gold which trade near 6-year high. citigroup and goldman saying more room to run for gold. it adds to gains for geld and funds all in. lot of them have been hedging so there.k they are exposure to gold that has changed. surge ining a big market professional managers investment in gold. >> all right, still to come, huawei has lobbyists to make its washington. >> next, advisor remains possess

on global markets. bloomberg. ♪

>> tensions continue to rise as political unrest in hong kong the latestna are editions to war on every investor's mind. head of international equity, leila heckman. us.t to have you with it's really concerning. have brexit earnings recession and trade war obviously. to say, i have been little bit surprised of the marketings last week when we had devalue situation. a lot of negative sentiment and lot of volatility wer the last week or two, are so positive on the global

markets. gdp growth is positive exception of argentina and turkey. growing.rowth s still market. to 2%. gdp is 1.5 >> does it worry you that we pmi slowing and

it seems to be there's a global pmission when it comes to numbers around the world. this trade uncertainty and not mention, just fed uncertainty as well as investors took the federate cut as a hawkish cut. undermine sentiment? ofthe markets rise wall worry. we've been looking at the global markets for over 20 years. be somethingnds to to worry about. today, we have the risk of an trade war. risks the world's greatest now. --have combination of war.ning of trade manufacturing starting to slow. it's starting to affect supply the world.nd

also if you're business trying invest,e out where to your next factory it's very hard to decide. china or mexico or vietnam. that'ssort of the worry going on. hand, because -- i do this there will be some terms of trade. after all, trump wants to get reelected in 2020. what you hear about when people are pro-trump, they say the economy is good. good.onomy is not i think he'll worry he won't be reelected. there will be compromise and he'll call it a big victory. >> okay. optimistic, there's so many wall of worry, there are indicators that suggest something nasty around the corner. have the yield curve

inversion. chart says over 30%. over's a recession, we're 30% right now. what's propping up equity now?ts is it just promise of more fed easing? the fact thatk to earnings growth is still positive and gdp growth around world is still positive. even though there's technical indicators around possible we still see, we are very data-driven, we still see around theowth world. you find value? complaining he's on hunt of value-driven acquisition and he can't find one. models?es risk for

>> we look around the world and valuations for every market around the world. if you look at price earnings a bubble andot it's not cheap. in the globalrage pe is around 20 times. long-term average has been times.20 if you look the u.s., pe is around 21 times. that's about historic average. cheap nor in a bubble. when i look for cheap markets diversifiedtext of portfolio. some of the markets we like now tradeeen hurt by the uncertainty in political issues. one of the markets that we like singapore, for instance. it's a cheap market. from absolute point of view

as well as relative to its own history. relatively high dividend yield. another market that we like is spain. a very cheap market. selling pe of 12 times earnings. it's one of the few markets around the world in which gdp have actually going upgraded. those are some of the developed markets that we like. you say that you are overweight in brazil. passed their reform househrough the critical vote. the argentinian crises coming up, will brazil bigger hit? >> whatever i have to say about markets, it has to be in the very diversified portfolio. i always remember when i was

starting out. some will say, what's your favorite market. sometimes it's hard. it's really in the context of the diversified portfolio. like brazil. we depend upon measurements world.the brazil, the real has been undervalued. wey start going back up and won't like brazil as much. right. leila hick han, -- hickman, head international equity. we have a big guest coming up. our interview with philippine vice president. that's 11:00 a.m. hong kong time. this is bloomberg.

>> quickly check of the business headlines.

revenue in the three months inough june came $835 million. below forecast. soundt seem to like the .f tencent music >> chinese made a vow to clinch luxury hotels in the u.s. we're told south korea asset asancial group is emerging the leading bidder. is working to arrange financing. package 15 hotels is $5.5 billion.ise that includes locations in new francisco and jackson. >> american airlines is won court order to block a claim low solo down. the judge in technically made

order to stop encouraging -- plenty more to on "bloomberg daybreak." this is bloomberg.

>> this after we time ways on the asx on monday. did close few points higher. equities all closing lower on monday. seeing futures point to a weaker open here. i'm paul allen in sydney. >> we're 6:30 p.m. "bloomberghing daybreak" australia. >> hong kong airport has been operations after protests forced the cancellations of all flights on monday. the china allying said hong kong

critical juncture and there are growing signs of terrorism amongst the demonstrators. >> protesters have extremely on us.us to attack seriously violent crimes. >> president trump former director anthony scaramucci said he won't support 2020 election.or 2020 he's undecided who to back. democrat.e a his break with trump came after criticized him on twitter over the weekend. u.s. attorney general william the federal jail

jeffrey epstein died. he's calling for a full investigation of what happened in the leadup to the former finance near's death. died in a suicide in lower manhattan. he was facing charges of sex trafficking and molesting teenage girls. day onnews 24 hours a air and tictoc on twitter and by 2700 journalists and is bloomberg. back it beijing. salina. >> thank you. today i want to highlight the rate on the 30-year treasury. these bonds yields are a hair all-time lows. billion four bases points. yield did fall as much as 14 bases points. it's around 2.13%. the record low was july 2016. we're getting very close to that point. this yield cousin is coming

closer to inversion. this is against that backdrop of protracted global trade u.s.-china, escalations getting everyday.worse we have the ongoing protests in hong kong as well as political unrests in argentina. driving the growth anduding the yen, dollar gold. we're going to be watching this closely to see what it's going that record low. much.nk you very the unrest in hong kong is adding to concerns to global rattle the by trade worries and the increasing chance of recession. on, let's get it over to our asia editor. out there?u seeing >> hi paul. all of a sudden, we have all factors.ative really weighing on investors. overnight, we saw those hong afterutures sharply lower

hong kong airport situation. have argentina, that's likely to wailing on emerging markets. about this,esting hong kong has been around now about 10 weeks. it's really coming to the floor investors. that's likely to weigh on sentiment. we got bond yields that are tumbling, that are ringing alarm bells. it's interesting. we got at chart that shows the 500, it's actually where it was at the beginning of last year in january. stocks really not going anywhere. to watch today definitely hong kong. it is one of the largest markets in asia. is a financial hub. about 500 billion of value has out since this protest kicked in. that benchmark is at the 7-month low. it's just another negative factor that investors will be

today.g >> andrea, more bad news for the the kiwi. goldman sachs cutting forecast for both. why? >> that's rights. they are saying this protracted slowing growth as well expected cutr than last year. weighing on currency. lot that is priced in. upside. very little aussie dollar is 10-year low. going a chart shows it through that support level during that flash crash in january. the next thing to watch out there is this numbers that we have in australia on thursday. a volatile is series. it does show slackness in the

labor market here and tips the in favor of another rate probably has a potential to head much lower, level.y to that 65 the money markets are already fully pricing in another rate cut. australia by end of october. lot of negative factors there for these two currencies. >> andrea, thank you so much for that. our cross asset asia editor. you can find her chartings on the gtv go library. huawei technology stepping up campaign against president trump's blackballing list. in washingtonrm to lobby congress. brody covers tech lobbying in washington. huawei going on a massive pr campaign. i speak to their chief security officer days ago. the top leadership talking to bloomberg.

does huawei hope to achieve? >> what's really trillion dollars here, the lobbying form say this law firm is going to be working on and trade issues as well as national security issues. really to the convergence of those two strings ast we normally consider distinct areas of government action. when it comes to huawei, those increasingly become one in the same to the extent that we last week the commerce department is basically holding passing those licenses that would allow u.s. companies huaweiore business with because trade tensions are escalating between u.s. and china. >> u.s. trying it get allies on board. is that effort proceeding? >> that's been much more u.s. tot for the achieve. had lot of trouble convincing,

allies note european to use that's cheap, reliable fast. there are reportedly some tensions between india and china gear.uawei it does seem like the u.s. having some success there in india and may be moving towards something like a blacklist that has..s. the efforts to get u.s. allies europe and australian places nearly as not moving quickly. that's rowling the company -- tot's allowing the company make plans to survive. reportsve seen news from bloomberg that companies intel are banned blacklist. >> those company have said they don't believe those sales

violate the condition, regulations that are in place that block u.s. sales. what they are dodge is trying to get those licenses that i mentioned from the u.s. commerce are now on those hold. commerce second wilbur ross not forward.em china saying they're not going to be buying u.s. agricultural products. that the primary lever on national security has become trade. companies now are in limbo huawei.e they are able to go to the u.s. case.es and plead their they are very much waiting for the outcome to go their way. right, bloomberg news brody.r ben br saudi ramco is reporting $47 billion in the first half. that's a drop of 12%.

ramco's plan to remain at the top. >> market conditions, our goals within the company. maintain our pollings as the world-leading crude oil producers. lowest producer as well. aramcoerine, what is us?rt it wil -- tell >> it's hugely profitable. the price of oil has been declining. said, the selling price is for saudi crude fell to about the first half according to the information that we saw today. below the $80 target that we're hearing about last year. the $70 a peril that we would need to see more

thestment according to saudi minister. this is just a firm that we know. strong incentive on prices. >> we heard that this would result in the best financial performance in any investor equity.debt or how did the energy market take it? up a little bit today. up little bit from being down last week. we lost over 5% last week. today we saw little bit of boost. that's in spate of sicklals. u.s.-china trade war war. aramco cut its capital spending, as a sign the supplies could tighten in the future. >> thank you very much.

wentg up next, argentina from virtual unknown to global market mover in a day. impact at homeis and potential implications. is bloomberg. ♪

>> i'm paul allen in sydney. "bloomberghing daybreak" australia shot defeat macri.esident here to explain why this vote is associaterkets argentina. thank you for joining us. can you give us a sense how big surprise this was.

this is another failure of opinion polling? was that race going to be much closer than we thought? >> it was another failure of polling. of course, the economic contact difficult for incumbent to win the election. argentines voted yesterday. it functioned more like a national poll. we weren't choosing candidates dry runer doing almost for the presidential election scheduled for october 27th. polls predicted much tighter margin between the two front runners. macri and fernandez his running mate, perhaps in the range of three to five -- macriith president packag having close of a reelection. that didn't happen. was a stunning setback for

president macri. 15% margin with alberto fernandez surpassing important of 45%.d he got to 47%. theis required to win presidential election outright in the first round. >> we saw very ferocious reaction on the markets. as you point out, the real october.isn't until is it all over? is this just an opportunity for a message?ng chance?ri still have a >> president macri said he does chance. he'll do everything he can to reverse the outcome. all theif you add up votes non-left third party candidates, they don't make up for that 15% margin. treating this as a

conclusion. alberto fernandez is inevitably almost like a president-elect. the next two and a half months will prove volatile. reaction that we extremely rapid depreciation of peso, argentine assets plunging, all of the feeding into greater inflation, volatility.ncial all that makes it actually more president macri to win reelection. he hoped more positive economic monthsors in recent would turn things around for him. the 2018 currency crises. he inherited a very difficult from the pastok government. there wasn't enough time to turn thing around. didn't listen to his message about fear of a return past.

was running ashe vice president, that argentines be choosing a past that represents the past associated with corruption scandals. all this to say, voters went with their pocketbooks. monthst two and a half will be volatile. towel.'t thrown in the it looks difficult for him to course. some analyst are talking about can he finish the term. substantiated is the fear? to debate.ubject albertosion to put fernandez top of the ticket in may. very surprising one.

moved master stroke. she knew she had a solid base of support but a sick feeling been she made this decision based on governability.d fernandez,t alberto who is viewed as a more moderate voice on the economy, he was actually her cabinet chief but resigned and became critic of her second term. easier to make it govern. this pragmatic decision really for her. >> you really can't rule out at this point that argentina will default on their foreign debt. we expect in terms of goalses with the -- negotiations imf if alberto does come to power in october? eyes are on alberto

fernandez now. it's much of his responsibility by providingarkets economicail in his program. one thing he has said, though on the campaign trail, he will the imf.te with he has promised he will not the debt. about toch of this is what degree he's his own man christina who investors see -- very much spooked because intervention with policy. alberto fernandez could herald to earlier version, which about strict capital control, more responsible, economic governance but inward looking argentineo protect industry, less advancement on that macri promised.

>> thank you so much for joining us. can get more in the fallout agency -- argentina's on day break. date onkong, we have developments there. kong airport said operation is continuing as normal. kong airport saying rescheduling after cancellations protest at the airport facilities. said 200 flights have been canceled. this is bloomberg.

>> gold mine selling. it is first metal. to meet itsk .roduction sees acquisition setting in. month deal innew nevada which added another forecast.nces to our range.ted our mid--year we're trading 5.4 million ounces. second half with nevada billion dollars the tailwind. >> you're going through lot of restructure. .e have the deal

gold.d the rand that's a lot to chew up. >> we've checked all boxes so far. worried about the rand gold agile management structure. we've done that. got very competent teams america, southth asia-pacific. those three teams really gelled well. they are all making good progress. i'm very happy where with where today. >> you counting to target by5 billion of asset sales next year. are you candidate you'll be able you'll ableconfident to achieve that? >> we're not selling assets that have value. they have really valuable assets. we have a process.

running it. it's not a case of sticking up for sale sign. we're working with our stakeholders. are onfortable that we track to achieve that target by end of next year. >> we seen geld performing very well with all the concerns around the trade war. are yout of price targeting by end of the year? us.hat's good for we're a billing producer. -- big producer. got profitable businesses. a long-term gold price. we're happy where we are. talk about it today. there's lot of downward pressure on new gold supply in the markets. not only do we have increase to bond through unsettled economic climate but also the gold toustry itself is going

start reducing the amount of reduces. >> let's get quickly check of headlines.s flash saudi to buy a state in the india'l business of reliance industries. aramco diversing way around from the kingdom. profits fell 12% about $47 billion in the first six months. oil prices fell. deal with reliant is in the early stages it will allow aramco to expand its chemical interests. >> david gibbs is ceo from january 1st. gibbs is young president and seef operating officer and oversees global divisions of taco bell.hut and will -- he will continue ceo

to ensure smooth trilogies. is it for "bloomberg daybreak" australia. is bloomberg ♪.

paul: welcome to daybreak asia, i am paul allen in sydney. shery: and i am shery ahn at bloomberg's headquarters in new york. selina: i am selina wang in beijing. we are counting down to new york's's market open. >> normal hong kong pressures resume, but tension mounts hong kong is at a critical juncture. paul: